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Econ Question
The equations for the AD and AS curves are given by: AD : YAD = 710 − 30P + 5G AS : YAS = 10 + 5P − 2Poil where Y is real GDP, P is the price level, G is the government purchases, and Poil is the world price of oil. a) What is the value of the simple multiplier? b) Write down the equilibrium condition. c) Solve for the equilibrium value of real GDP and the price level...
AS AD 50100 200 300 400 500 600 700 REAL OUTPUT (in bilions of dollans per...
AS AD 50100 200 300 400 500 600 700 REAL OUTPUT (in bilions of dollans per year) following graph depicts a macro equilibrium. Answer the questions based on the information in the graph. (a) What is the equilibrium rate of GDP? (b) If full-employment (c) How large is the real GDP gap? real GDP is S1200, what problem does this economy have? IEshe multiplier were equal to 4, how much additional investment would be needed to increase aggregate demand by...
EXERCISE1: ADAD, AD, Refer to the diagram, in which Of is the full- employment output. Price...
EXERCISE1: ADAD, AD, Refer to the diagram, in which Of is the full- employment output. Price Level 1. A contractionary fiscal policy would be most appropriate if the economy's present aggregate demand curve were at Real GDP 2. An expansionary fiscal policy would be most appropriate if the economy's present aggregate demand curve were at 3. If the economy's present aggregate demand curve is , government should undertake neither an expansionary nor a contractionary fiscal policy. 4. At what AD...
Exercise 3 Consider the following model of the economy C 170 +0.6 (Y-T) に250 G-300 T...
Exercise 3 Consider the following model of the economy C 170 +0.6 (Y-T) に250 G-300 T 200 a. What is the value of the marginal propensity to consume? b. What is the value of the government budget defidt? c. Calculate the equilibrium level of GDP d. What is the value of the government-purchases multiplier? e. Use your answer to Part d to calaulate the amount by which government purchases of goods and services would have to rise in order to...
The following table shows the real output demanded and supplied at various price levels in a...
The following table shows the real output demanded and supplied at various price levels in a hypothetical economy. Real Output Demanded Price Level Real Output Supplied (Billions of dollars) (Index number) (Billions of dollars) 40 160 340 80 120 320 120 80 280 200 40 200 320 20 80 On the following graph, use the blue points (circle symbol) to plot the aggregate demand (Initial AD) curve for the economy. Then use the orange points (square symbol) to plot the...
Hi, I need some help with these. Thanks! C S $ AD $100 $ 160 GDP...
Hi, I need some help with
these. Thanks!
C S $ AD $100 $ 160 GDP $100 200 300 400 500 600 700 I $80 80 80 80 220 280 340 80 400 80 460 80 Complete the columns on S, and AD. (7 marks) The MPC is and the MPS is (4 marks) At $600 billion level of GDP, the APC is and APS is (4 marks) 4. If both government spending and taxes are zero, the equilibrium level...
Por CPI LRAS, SRAS, AD AD, AD Y, Үр Ү, Yor Real GDP Suppose the economy...
Por CPI LRAS, SRAS, AD AD, AD Y, Үр Ү, Yor Real GDP Suppose the economy is producing the output level Yp, and a positive demand shock shifts the AD, curve to AD2. The economy now has __ A. a recessionary gap and expansionary fiscal policy can close the gap. B. an inflationary gap and expansionary fiscal policy can close the gap. C. a recessionary gap and contractionary fiscal policy can close the gap. D. an inflationary gap and contractionary...
The economy of Neverland has the following AD and AS schedules. Denote Yad as the level...
The economy of Neverland has the following AD and AS schedules. Denote Yad as the level of real GDP along the AD curve; let Yas be the level of real GDP along the AS curve. GDP is shown in billions of 2002 dollars. (10 marks) Price Level 90 100 110 120 130 140 YAD 1100 1000 900 800 700 600 YAS 750 825 900 975 1050 1125 a. Plot the AD and AS curves on a scale diagram. b. What...
1. Suppose you are given the following information about Japan's economy: C = 150 + 0.8(Y-T)...
1. Suppose you are given the following information about Japan's economy: C = 150 + 0.8(Y-T) T = 0 Iplanned = 300 NX = 50 G = 200 a) Set up the aggregate planned expenditure function for Japan. (Write down the equation). b) Graph the aggregate expenditure function, using the diagram below. Be sure to label you graph. Carefully indicate the intercept. What is the slope of the line? c) Calculate equilibrium Real GDP (Y). d) Indicate the equilibrium on...
only b, d, e, and f. thanks ! Using the what do we call such an...
only b, d, e, and f. thanks !
Using the what do we call such an output gap! This question involves algebraically solving the system of two equations given by the AD and AS curves. The equations for the curves are given by AD: YAD = 710 - 30P + 5G AS: YAS = 10 + 5P - 2POIL where Y is real GDP, P is the price level, G is the level of government purchases, and Poil is the...
AS AD 50100 200 300 400 500 600 700 REAL OUTPUT (in bilions of dollans per year) following graph depicts a macro equilibrium. Answer the questions based on the information in the graph. (a) What is the equilibrium rate of GDP? (b) If full-employment (c) How large is the real GDP gap? real GDP is S1200, what problem does this economy have? IEshe multiplier were equal to 4, how much additional investment would be needed to increase aggregate demand by...
EXERCISE1: ADAD, AD, Refer to the diagram, in which Of is the full- employment output. Price Level 1. A contractionary fiscal policy would be most appropriate if the economy's present aggregate demand curve were at Real GDP 2. An expansionary fiscal policy would be most appropriate if the economy's present aggregate demand curve were at 3. If the economy's present aggregate demand curve is , government should undertake neither an expansionary nor a contractionary fiscal policy. 4. At what AD...
Exercise 3 Consider the following model of the economy C 170 +0.6 (Y-T) に250 G-300 T 200 a. What is the value of the marginal propensity to consume? b. What is the value of the government budget defidt? c. Calculate the equilibrium level of GDP d. What is the value of the government-purchases multiplier? e. Use your answer to Part d to calaulate the amount by which government purchases of goods and services would have to rise in order to...
Hi, I need some help with
these. Thanks!
C S $ AD $100 $ 160 GDP $100 200 300 400 500 600 700 I $80 80 80 80 220 280 340 80 400 80 460 80 Complete the columns on S, and AD. (7 marks) The MPC is and the MPS is (4 marks) At $600 billion level of GDP, the APC is and APS is (4 marks) 4. If both government spending and taxes are zero, the equilibrium level...
Por CPI LRAS, SRAS, AD AD, AD Y, Үр Ү, Yor Real GDP Suppose the economy is producing the output level Yp, and a positive demand shock shifts the AD, curve to AD2. The economy now has __ A. a recessionary gap and expansionary fiscal policy can close the gap. B. an inflationary gap and expansionary fiscal policy can close the gap. C. a recessionary gap and contractionary fiscal policy can close the gap. D. an inflationary gap and contractionary...
The economy of Neverland has the following AD and AS schedules. Denote Yad as the level of real GDP along the AD curve; let Yas be the level of real GDP along the AS curve. GDP is shown in billions of 2002 dollars. (10 marks) Price Level 90 100 110 120 130 140 YAD 1100 1000 900 800 700 600 YAS 750 825 900 975 1050 1125 a. Plot the AD and AS curves on a scale diagram. b. What...
1. Suppose you are given the following information about Japan's economy: C = 150 + 0.8(Y-T) T = 0 Iplanned = 300 NX = 50 G = 200 a) Set up the aggregate planned expenditure function for Japan. (Write down the equation). b) Graph the aggregate expenditure function, using the diagram below. Be sure to label you graph. Carefully indicate the intercept. What is the slope of the line? c) Calculate equilibrium Real GDP (Y). d) Indicate the equilibrium on...
only b, d, e, and f. thanks !
Using the what do we call such an output gap! This question involves algebraically solving the system of two equations given by the AD and AS curves. The equations for the curves are given by AD: YAD = 710 - 30P + 5G AS: YAS = 10 + 5P - 2POIL where Y is real GDP, P is the price level, G is the level of government purchases, and Poil is the...
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